California’s SB 822 Protects Unclaimed Crypto Assets from Liquidation
- California’s SB 822, signed into law in October, is the first US legislation to protect unclaimed cryptocurrencies from forced liquidation.
- The law mandates that unclaimed digital assets be transferred in their native form rather than liquidated, preventing potential taxable events for holders.
- Assets are considered abandoned after three years without owner activity and must be reported with a six to twelve-month notice period.
- Holders are required to transfer the same asset type within thirty days to a state-appointed custodian if unclaimed.
- Claimants can recover either the original crypto or its proceeds after a waiting period of approximately eighteen months.
SB 822 reshapes how digital assets are treated under California law by integrating them into existing unclaimed property frameworks, which could influence similar regulations in other states.
This legislation allows users to reclaim their original assets while preventing forced liquidation, marking a significant advancement for consumer protection in the cryptocurrency space. (Source)
